Prudential Financial Inc

Carl Icahn is one of the first activist investors to voice his opinion against share buybacks. He believes that companies are increasingly putting money into buybacks instead of using them for much-needed capital improvements.

A company managing higher risk products must maintain a higher level of minimum capital compared to a company with a relatively lower level of risk.

The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.

For P&C insurers such as AIG and ACE, various mandatory requirements may drive sales of vehicle, workers’ compensation, and homeowners insurance.

Insurance premiums have grown at a modest pace after a dip in 2009 due to the financial crisis, which the industry was able to navigate.

P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.

Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.

In 1Q18, Berkshire Hathaway’s (BRK.B) insurance revenue fell YoY (year-over-year) to $14.6 billion from $22.9 billion.

Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.

In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.

Interest rates are a key performance driver for life insurance companies, affecting their margins, hedging costs, and product sales.

Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.

Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.

Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.

Prudential has comfortable solvency positions in its subsidiaries. In the US, Prudential Insurance’s solvency ratio was well above the target ratio of 400%.

MetLife intends to grow its retail business and expects low single-digit growth in the long term.

MetLife is a market leader in the US and the largest life insurer in Mexico and Chile. It is among the leading players in Japan, Korea, and Poland.